What is ERC-8021?

ERC-8021 is a recent Ethereum Request for Comments (ERC) proposal aimed at natively integrating "builder codes" into Ethereum's transaction layer at both Layer 1 (L1) and Layer 2 (L2) levels. Builder codes are identifiers embedded in transactions that specify which application or developer "built" or facilitated the transaction, allowing developers to earn revenue shares directly from user activity. This draws inspiration from platforms like Hyperliquid, where developers have generated millions by monetizing app interactions without relying on traditional token models.

In essence, ERC-8021 introduces a standardized registry where developers register their wallet addresses to receive automatic revenue from transactions tied to their builder codes. This creates a more direct, on-chain mechanism for app monetization, potentially transforming how Ethereum incentivizes ecosystem growth.

Key Benefits of ERC-8021

Adopting ERC-8021 could bring several advantages to Ethereum's developers, users, and overall ecosystem. Here's a breakdown:

Benefit Description
Direct Developer Monetization Developers can embed their unique codes in transactions, automatically routing revenue (e.g., MEV tips or fees) to their registered wallets. This eliminates the need for complex token launches or airdrops, allowing quiet, sustainable income from high-usage apps—similar to how Hyperliquid devs have earned millions.
Enhanced Ecosystem Innovation By making it easier to profit from building, ERC-8021 lowers barriers for creating user interfaces and dApps on Ethereum's mature infrastructure. This could spur thousands of new applications, fostering competition and rapid iteration without diluting value through over-tokenization.
Native L1/L2 Integration Unlike external or L2-specific solutions, builder codes would be standardized across Ethereum layers, reducing fragmentation. This ensures seamless revenue flow and compatibility, making Ethereum more attractive for cross-layer development.
User-Centric Revenue Sharing Transactions become more transparent, as users can see which app earns from their activity. This could lead to better-aligned incentives, where devs focus on high-quality UX to maximize engagement and tips, ultimately benefiting end-users with superior tools.
Scalable Wealth Creation Model Ethereum could replicate Hyperliquid's "developer wealth myth" on a larger scale, turning the platform into a foundation for profitable app-building. This might attract top talent, boost TVL, and position Ethereum as a leader in on-chain economies.

Overall, ERC-8021 addresses a gap in Ethereum's developer economy by making monetization as straightforward as building. While still a proposal (as of November 2025), its adoption could accelerate Ethereum's shift toward a more app-driven, revenue-positive network. For the full spec, check the official EIP repository once it's formalized.

Below is a link from Perplexity for the following question

Can you explain the benefits of ERC-8021 ?

https://www.perplexity.ai/search/can-you-explain-the-benefits-o-PtIjYXB8SMekxkoP70cVcw